Current Issue

DISCUSSION ON ORGANIZATIONAL DEVELOPMENT AND ENTERPRISE MERGERS & ACQUISITIONS – TAKE THE MERGER CASE OF JABIL CIRCUIT AND GPG AS AN EXAMPLE

Dr. Liu Ying-Yen

Chang Jung Christian University,

Ph. D. in Business and Operation Management, Taiwan Empresarial Commercial University Ph. D. in Leisure Management, Costa Roca

Doctoral Research, California State University

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Liu Ying-Yen Studio

Studio Principal

(Academic Research, and Business Management Consultant)

Abstract

Cummings, Worley (2019) noted at the organization level, development concerns an organization’s capability to be self-regulating, to solve its own problems, and adapt to it. Acquisition refer to a corporate organization using various capital resource to purchase legal the equity of another company through legal procedures, while a merger is a mutual agreement between two corporations in which the primary management rights are negotiated to form a new entity. James C. Collins and Jerry I. Porras (1996) Said companies that enjoy enduring success have core values and a core purpose that remain fixed while their business strategies and practice endlessly adapt. The purpose that merger of Jabil Cireuit and GPG public acquisition in the market, where acquirers purchase equity from individuals and enterprises to enhance competitiveness and market share in the existing product sector. That reach to expand the enterprise's development, to improve profit ability to reduce costs, and to spread risk. In his industrial competition strategy, M. Porter think in industrial competition strategy that enterprises can achieve profits ahead of competitors through low-cost, diversification, and centralization strategies. 

This study demonstrates that the two companies' M&A plan is to expand their organizational scope, to achieve both internal and external integration, to create a new corporate portfolio, and to establish new values and a vision. Fang, Tsai, and Tsai (2022) Explained that true and lasting value arises from how decision-makers manage core competencies, reconcile the resources and capabilities of the company, and formulate an adaptable strategic direction, ensuring the company’s ongoing value creation. The study also offers practical planning for various academic and related industries. 

Keywords: Organizational Development, Mergers and Acquisitions, Market Share, Diversification, Vertical Integration, Horizontal Strategy